Exclusive: Spinny set to acquire GoMechanic after its turnaround

Spinny is set to acquire car servicing platform GoMechanic from the consortium that currently owns and operates it, according to two sources aware of the discussions. This will be one of the notable consolidations in the used-car and auto services segment in the past few years. 

This will be the Accel-backed firm’s fourth acquisition after Truebil, Scouto and Autocar-operator Haymarket’s automotive titles in India.

“The terms of the deal have been finalised, and it is expected to close by the end of this month,” said one of the sources requesting anonymity. “Discussions have been underway for the past two months, and Spinny issued the term sheet in the last week of October.”

Sources indicated that the deal would primarily be a cash transaction. Entrackr could not ascertain the deal size.

The deal will pave Spinny’s entry into the largely unorganised vehicle service and maintenance space. “It’s a natural extension for Spinny and a way to engage and monetise customers even after selling cars through the platform,” said the source quoted above.

GoMechanic is owned and operated by a consortium including Hero Group, Lifelong Group, Stride Ventures, and others. It runs a garage network across 150 cities in India, partnering with independent workshops to provide standardized car services with e-booking and transparent pricing.

It’s worth noting that GoMechanic was embroiled in corporate governance issues, including financial irregularities, which led to its acquisition by a consortium led by Lifelong Group in May 2023. In November 2023, the company raised $6 million at a $20 million valuation, followed by a $9 million tranche last month from Hero Enterprises and others, according to its regulatory filings with the Registrar of Companies (RoC).

After the takeover, the consortium replaced GoMechanic’s founding team, restructured operations, and rebuilt the company into a scaled car service platform. Sources added that GoMechanic has turned around its business in the past two years. “The firm currently clocks an annual recurring revenue (ARR) of around Rs 350 crore and is near break-even,” said the second source.

The episode shows that sound governance and disciplined execution are crucial to stabilizing a business, proving that with the right leadership and focus, even struggling startups can recover.

According to TheKredible, the Gurugram-based startup reported revenue of Rs 4,657 crore in FY25, reducing its losses by 28% compared to the previous year. In March, Spinny acquired Haymarket SAC’s automotive publications in India. The Niraj Singh-led company had earlier taken over connected car startup Scouto in February 2022 and used-car platform Truebil in August 2020.

With Autocar and GoMechanic now under its fold, Spinny appears to have integrated the entire value chain from content and discovery to transaction and ownership. This move positions the company to cover the entire car ownership journey through one platform.

Entrackr has reached out to Spinny and GoMechanic for comments, and the story will be updated if they respond.